I wanted to follow up on yesterday’s post that centered on identifying key levels around which the market is likely to trade. (You can review that post by clicking here: Yesterday’s post. ) If you recall, the key level was 1499.25. It was last week’s high and we saw on the daily chart that the market had traded around that level (1498 – 1500) for a couple of days.
Take a look at the chart posted here. This is the 9,000 Tick Chart. Yesterday, the market returned to that same level and found resistance (red arrow) just after the US open. That provided a good short opportunity. Today, within a half-hour of the US open, that same level again set up another trade (green arrow). This time it located a long opportunity to capture the nice move up we are having today.
Note well that there are no floor trader pivot numbers, fancy algorithms, Fibonacci projections, non-lagging indicators, or other things that are obscure and hidden. For this method of trading that has been serving traders well since 1910, that stuff just isn’t needed. Everything is simple and out in the open. We look at price, volume, key levels and the waves. It is not 100% – nothing is – but it is pretty darn good about keeping you on the right side of the market and offering choice trades in a straightforward and uncomplicated manner. We work on developing these skills each week in Deep Practice. If you are interested in this style of trading, you can learn more about what we do to hone your skills here: Deep Practice
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